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FEBRUARY 2010 HAPPY VALENTINE’S DAY! LOOKING OUT FOR BUSINESS 410 South Minnesota Street • Carson City, NV 89703-4272 775-882-1700 • www.rannv.org l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l Counting Nevada... Census and the Two “R’s” NEVADA WILL GAIN ANOTHER CONGRESSMAN NEVADA NEWS “Certainly, last year we did an episode about the census and sampling versus a direct statistic. You just said the word ‘census’ and people fell asleep.” Aaron Sorkin, creator/writer of “West Wing” 2001 T O MANy, THE cENSUS in Nevada counted. congressmen/women. IS ANOTHER cOSTly In 1990 Nevada’s response Following the completion of the gOvERNMENT rate was one of the worst in the count, states are notified of their PROgRAM DESIgNED to nation (45th) and cost the state numbers and the Legislature waste taxpayers’ dollars. But, in fact, tens of millions of dollars. By 2000, undertakes the two “R’s”. it’s a major foundation of our system state officials were ready with a “be of government — the chain that counted” campaign. Nevada showed ReAPPORTIOnMenT And links the American people to their the biggest improvement in the RedIsTRICTInG government. nation and climbed to 19th for its’ The U.S. Census Bureau must So important is the count that response rate. make the official announcement to must be performed every 10 years On March 15th the census forms Nevada by April 1, 2011. that it’s in Article 1, Section 2 of the will be mailed to each household. The figures are sent to the Constitution of the United States. On April 1, the census will issue a Legislature, which is responsible for The 14th Amendment, passed after snapshot of the population. And on deciding the reapportionment and the Civil War, clarifies that everyone May 1, census workers, carrying little redistricting of the Congressional and must be counted regardless of handheld computers, will knock on Legislative seats. Cities and counties citizenship. Simply put, the count doors, to find out why forms were must do their own drawing of the is used to figure out how many not returned, or to clarify answers. ward and district lines. representatives each state receives This year’s short form will Nevada’s Legislature has been in the House of Representatives as have 10 questions, most of which preparing for the redistricting process well as state legislatures. (Without the concern race. Unlike previous years, since July 2009. count, some states would be under- there will be no long form. That has “We’re following the same represented in Congress, while others been replaced with the American process we have in previous years,” would be over-represented.) Tax Community Survey that is sent out said Lorne Malkiewich, Legislative dollars are apportioned to the states more often than the census. Counsel Bureau Director, “research based upon the census information. As an employer, you can staff is organizing the information The 2010 census is recognized as one encourage your employees to fill for the Interim Committee on of the most important in history. out their forms and return them in a Continued on page 2 For Nevada, an accurate count timely manner. Initial estimates are means $917 in federal funding for each person. Conversely, it’s a loss of that Nevada’s population likely fell by about 1 percent between July 2008 InsIde the same amount for each person and July 2009, the first time since A Fight Fraud Warning for missed. In the 2009 Legislative World War II that Nevada has seen Nevada Businesses .................................. 2 Session, $960,000 was allocated such a decrease. Those numbers Nevada State Board of for a campaign to make Nevadans will only be known for certain once Pharmacy Meeting Update .................... 3 aware of the census. In December the count takes place. Each person The Irony of Punishment ........................ 4 the Board of Examiners awarded a ensures federal funding for schools, Modest Holiday Spending public relations contract to Weber roads and health care. Increase in 2009 ....................................... 5 Shandwick, a New York PR firm, Nevada’s growth prior to the 2008 Retail Employment in which will subcontract with Greg decrease has all but guaranteed Nevada Has Declined .............................. 5 Ferraro’s company, The Ferraro Group, that Nevada will have another Movin’ On Up (Part 3) .............................. 8 in Reno and Las Vegas. The campaign representative — giving the state Next Big Shopping Rush ......................... 8 has already begun, with the goal of a total of six in the Congressional Security Tips for Retailers .....................11 having every man, woman and child Delegation — two senators and four Retail Association of Nevada • www.rannv.org Census Continued Reapportionment.” “State law requires the the South, districts will be larger Assemblyman Tick Senate to be one-half the size than they are at present, but we Segerblom (D-Boulder City) of the Assembly,” said Michael need to ensure one-man, one- chairs the interim committee. Stewart, research analyst for vote,” he said. “It’s important to me that the Reapportionment Interim Assemblywoman Sheila we get as much public input as Committee. “In 2001 there Leslie (D-Reno) is running for possible,” explained Segerblom, was a proposal to expand the the State Senate this year, and “we’ll be holding public Assembly to 46 seats and the reapportionment is one of her hearings. Clearly we’re going to Senate to 23. That didn’t pass, of concerns. “I want to protect protect the Democratic seats we course. Our constitution limits northern Nevada. I’ll be fighting presently hold, but I want to be the size of Legislature to 75 for more seats to ensure proper as non-partisan as possible.” (50 in the Assembly, 25 in the representation,” she said. One of the major issues Senate). Staff’s main function is One of the problems additional salary costs, etc.,” will be whether the legislature to provide the committee with of expanding the size of the he said. stays the same size or if it will be as much information as possible Legislature is the cost. The 2011 The Interim Committee will expanded. Presently there are 42 and ensure the rules, regulations session will be largely occupied also be responsible for hiring Assemblymen and 21 Senators. and laws regarding redistricting with possible cuts to the a consultant to help figure the are followed.” budget. Will the state be able to various maps. The districts must Segerblom afford a larger legislature? conform to various standards said that he “One of the costs would established by law and court didn’t want to be office space and space decisions. see Northern in the Assembly and Senate The Legislature is publishing Nevada left Chambers,” said Stewart. a newsletter and posting without “Presently, as I recall, information on the their Web appropriate the Senate Chamber can site. You can access it at: representation. accommodate two more www.leg.state.nv.us/ “Clearly the senators and I believe the Interim/75th2009/ growth has Assembly can handle four Committee/Studies/ largely been in more. Of course there would be Redistrict/?ID=57 n A Fight Fraud Warning for Nevada Businesses S MAll AMERIcAN complete the transaction. Once the fraudulent order and would like to American Embassy in Singapore at E-TAIlERS AND transaction/credit card number(s) verify its legitimacy, please contact Singapore.Office.Box@mail.doc. ExPORTERS REMAIN A are accepted, the “buyer” requests Bill Cline at gov. They will be happy to assist PRIMARy TARgET for credit immediate air shipment. Not email@example.com or you in verifying the bona fides of card fraud schemes using Singapore aware of the fraud that has just the Commercial Service at the the transaction. n as the purported ordering point and occurred, the merchant complies shipping destination. with the customer’s request of an If you think you have been the victim of similar scams Detailed information on these expedited shipment to a legitimate regarding other locations, please contact: fraud schemes can be found at freight forwarder in Singapore. The Bill Cline www.buyusa.gov/singapore/en/ merchant will then receive a charge Director, US Commercial Service, Reno warning_credit_card_fraud.html back from the credit card company Team Leader, Global Environmental Team The orders normally range after the card is reported stolen. US Department of Commerce from US $5,000 to US $30,000. By that time the goods have been One E. First St., 16th Fl • Reno, NV 89501 The “buyer” places the order transshipped out of Singapore and Tel 775.784.5203 • Fax 775.784.5343 • www.buyusa.gov/nevada via telephone or Internet email are unrecoverable. Follow CS Reno on Twitter www.twitter.com/CSNevada correspondence. The “buyer” The FBI is working with the Consumer protection information can also be found on the either splits the total purchase Singapore Police and other law Attorney General’s Web site at www.ag.state.nv.us/org/bcp/education.htm price between several cards or enforcement agencies in the the Nevada Fight Fraud Web site at www.fightfraud.nv.gov and at the makes several attempts (using region to combat this crime. If you Federal Trade Commission Web site at www.ftc.gov. multiple credit card numbers) to suspect that you are in receipt of a 2 ◆ www.rannv.org • Retail Association of Nevada Nevada State Board of Pharmacy Meeting Update By Liz MacMenamin T HE STATE BOARD investigators to avoid issues that have helped me with this from the grants were not forthcoming for the OF PHARMAcy MET came to light in the cases heard beginning and Leo Bausch, who PMP program. There was only one ON WEDNESDAy, in the discipline cases that were was the board member facilitating dissenting vote on this regulation. DEcEMBER 2ND and presented at the board meeting. the interested parties that this LCB File No. R122-09: Thursday, December 3rd, 2009, in The fulfillment regulations regulation would affect. This regulation revises requirements Reno at the Airport Plaza Hotel. were heard on Thursday morning New regulations that were for an advanced practitioner of The Board listened to discipline and Medco had sent in proposed passed at this meeting in the public nursing to obtain a certificate of cases on Wednesday morning changes to the regulation. After an workshop were: registration to dispense certain and the common themes in both offline discussion with Medco, it LCB File No. R123-09: medications. that were heard was the issue of was determined that the changes This regulation adds buprenorphine “counseling”. On Thursday a board they were proposing were not really to the list of schedule III drugs and New STATe BOARD OF member brought up the recurring needed. We went to the table in removed it from the schedule V PhARmACy memBeRS problem regarding what constitutes agreement and the board accepted listing. We have two new board counseling of a patient. The board the proposed changes that we had LCB File No. R120-09: members on this board, Kirk made the decision to bring this introduced. Those changes were to This regulation made changes Wentworth and Beth Foster. subject up at the next board delete Section 8 (a)(2), and (c). The to requirements for a physician Kirk Wentworth is an independent meeting and staff suggested that regulation will come back for public assistant to obtain registration pharmacist practicing in Carson they do a “round table” discussion. hearing as soon as LCB returns the certificate to prescribe and dispense City. Beth Foster is a pharmacist The discussion would include the regulation with the changes. Board certain medications. practicing at the Veterans’ industry, board members, and the staff commented that they were LCB File No. R119-09: Administration Hospital. We would investigators and inspectors. It will not expecting the changes back in This regulation increased the fees like to extend a welcome to these be determined at that time what time for the January meeting, so this for the investigation, registration new board members and look actions the Board will take after will probably not be heard until the or renewal of registration for a forward to working with them in holding this discussion. RAN will be meeting in March. pharmacist and intern pharmacist. the future. present at this meeting to represent We would like to thank Larry Pinson stated at one point The next board meeting our members. We hope that the everyone that has helped with this that the board did not really need will be on January 13 and 14th in board will come up with some language. I would especially like to the increase but would hold these Las Vegas. n clarification for the inspectors and thank the “experts” from Raley’s who funds in the event that future Nevada Supreme Court Rules: Pharmacies Not Liable T HE NEvADA macy’s customer, if anyone, and not A year later, Ms. Copening was Copening’s drug use. In a 13-month SUPREME cOURT, IN for the general public’s protection,” driving a Dodge Durango when period, she obtained 4,500 A 5–2 DEcISION IN stated the court in the majority she hit two deliverymen who were hydrocodone pills at 13 different DEcEMBER 2009, ruled opinion. standing on the shoulder of a pharmacies. After the task-force that pharmacies couldn’t be held The decision upholds a ruling highway, killing one and severely records came to light, the mens’ liable when a customer causes a by District Judge Douglas Herndon injuring the other. In Ms. Copening’s lawyers included the pharmacies as fatal car accident. who earlier dismissed the pharma- car, police found prescription defendants. The case asked whether cies from a lawsuit filed by the de- bottles and loose pills. Police reports But the court pointed out the drugstores must use information ceased man’s family. Ruling for the said she appeared confused, and a letter did not require the pharma- available to them to protect the pharmacies were Justices Hardesty, blood test detected the painkiller cies to stop filling valid prescriptions public from potentially dangerous Mark Gibbons, Michael Douglas, hydrocodone. Ms. Copening for Copening. Justices said there is customers. Ron Parraguirre and Kris Pickering. pleaded guilty to two counts of “no material difference” between Justices decided Nevada’s The customer, Patricia reckless driving and served nine pharmacists who dispense drugs pharmacy laws “are not intended to Copening, had purchased nearly months in jail. and bartenders who provide cus- protect the general public from the 4,500 doses of prescription The men’s families sued Ms. tomers alcohol. Under the state’s type of injury sustained in this case.” painkillers in one year, attracting the Copening and the doctors who “dram shop” law, bartenders are not Pharmacies do not have a legal duty attention of Nevada’s controlled- wrote her prescriptions. In the responsible for accidents caused by to protect people injured by their substance task force. The state course of the litigation, they learned their alcohol-drinking customers. customers, they stated. board sent letters to 14 pharmacies that the state Prescription Control The legal action against Ms. “The duty (under state law) in the Las Vegas area in 2003 Substance Abuse Prevention Task Copening and the doctors has is to the person for whom the warning that Ms. Copening could Force in 2003 had written letters to Continued on page 4 prescription was written, the phar- be abusing drugs. pharmacies and doctors concerning ◆ 3 Retail Association of Nevada • www.rannv.org The Irony of Punishment NEW RESEARCH MEASURES THE IMPACT OF REWARD AND PUNISHMENT By James Larsen M EET FRED. HE’S A to guide him. Ozgur Gurerk, from measure each group’s response to up, i.e. when a supervisor neglects NEW SUPERvISOR, the Laboratory of Experimental their incentive system. For groups to provide the expected reward, AND IT’S HIS FIRST Economics at the University of Erfurt whose contribution had fallen then this absence of reward is DAy ON THE jOB. in Germany conducted the study. and whose leaders switched to a experienced as a punishment. As he is introduced to his new Gurerk set up an elaborate punishment incentive system, the Ironically, reward incentive employees, Fred imagines that each laboratory experiment using 20 immediate increase amounted systems are mostly experienced as one of them is as hard working as groups with 6 people in each to 60%, and that surprised even punishment for proper behavior. he is. One by one, his people smile group. He randomly assigned one Gurerk. Punishment incentive systems, and tell him they’re glad to have to be supervisor and gave each With the third repetition of the on-the-other-hand, require much him. “This will be a snap,” Fred muses supervisor the freedom to adopt experiment, five more supervisors less action from the supervisor. to himself, and that evening, he either a reward or a punishment switched to a punishment system, He only needs to act when free- gives his wife a positive report. He’s incentive system: small additions but some who had switched to riding demands it. The rest of the glad to have such a good staff, and to or subtractions from their punishment in the second set time, when employee conduct is he tells her that he doesn’t expect monetary compensation. Next, switched back to positive. Gurerk constructive, the supervisor doesn’t to use punishment in managing this he turned the groups loose on a was measuring all the reactions. need to do any punishing, and that’s group of people. A month later, he 10-task assignment. Supervisors The five groups who found experienced as a reward. Curiously, may be singing a different tune. The used incentives after each task themselves in a punishment punishment incentive systems, honeymoon for new supervisors to encourage desirable behavior. incentive system in the final set of where punishment is rarely used, ends when they recognize free- He repeated this experiment two tasks also responded with a strong are mostly experienced as reward riding for the first time. more times keeping the groups improvement of their performance. for proper behavior. The reward is Most jobs are organized together and giving the supervisors They increased 28%. Those that merely the lack of punishment. to allow flexibility. An absence the opportunity to change the switched to punishment for the Not all of Gurerk’s groups of one person should not close incentive system at the beginning second set and remained negative developed free-riders. A few the business merely because the of each new set of tasks. in the third set posted the highest groups displayed consistently absent person is the only one who Just as Fred began positively performance of all. The poorest positive performance and good can carry out an essential task. But with high hopes for cooperative, contributions came from groups cooperation, and they responded flexibility encourages free-riding, productive efforts from his who switched from punishment well to a reward incentive system. and often, it’s the supervisor himself employees, 19 of the 20 supervisors in the second set to reward in the So the incentive system a supervisor who has to step up and carry out in Gurerk’s experiment also adopted third. Their performance actually adopts should respond to the needs a task that someone else should positive incentive systems in the declined. of the employee group. Groups be doing. That’s when punishment first set of tasks. Near the end of this In looking over his work, with free-riders need, want, and becomes more attractive. first set, free-riding appeared, and Gurerk made some observations appreciate a punishment incentive Punishment takes many where it was most pronounced, that are helpful. system to correct free-riding. forms: a scowl, a critical remark, supervisors switched to punishment Reward systems reveal a Groups without free-riders do best a good chewing out, a written incentive systems in the second curious paradox. Supervisors must with reward. n warning, a deduction from pay, a set of tasks and began handing remember to deliver the rewards, day off without pay, and ultimately, out punishments to free-riders. It and even if they never fail to provide Reference: Gurerk, Ozgur, Bernd Irlenbusch, and Bettina Rokenbach (2009) Motivating termination. None of these are nice, didn’t take long for the free-riders to proper rewards for productive Teammates: The Leader’s Choice Between Positive but eventually, supervisors will change their ways. For many, it only behavior, rewards quickly lose and Negative Incentives. Journal of Economic use them all. Fred will worry about took the threat of punishment with their attractiveness. They become Psychology, 30(20009), 591-607. C 2010 Management Resources this and agonize about adding the new incentive system to correct expected, and receiving them is punishment to his management the free-riding. taken for granted. But when an repertoire, but now, there is research Gurerk devised a way to expected reward doesn’t show Supreme Court Continued been on hold while the pharmacies third parties…The pharmacies’ acts new duty on pharmacies. a component that the majority sought to be dismissed from the of dispensing prescription drugs Justices Michael Cherry and ignores–notice.” lawsuits. The district court granted to Copening did not create a legal Nancy Saitta dissented from the This case is part of a broader the pharmacies’ request, noting duty,” the court wrote in its majority majority opinion, saying the phar- movement to place more responsi- that the Nevada law creating the opinion. macies had a duty to review Ms. bility for patients’ prescription-drug task force doesn’t specify whether In a footnote, the court added Copening’s records and consider use on pharmacies. Prescription- any action is required by the that a regulation amended by the the task-force letters before filling tracking systems are operating in 33 pharmacies. state pharmacy board in 2006, her next prescription. states, with the goal of identifying The families appealed to the two years after the accident, could “Generally, the relationship be- potential addicts and referring them state Supreme Court, which af- change the relationship of pharma- tween a customer and pharmacist for treatment, or getting law en- firmed the district court’s ruling. “We cies to third parties. But the court does not establish a duty in favor of forcement involved if necessary. n conclude that pharmacies do not declined to decide whether that third parties,” the dissenting opinion owe a duty of care to unidentifiable regulation definitely imposed any said. “This case, however, includes 4 ◆ www.rannv.org • Retail Association of Nevada Latest Survey Suggests Modest Holiday Spending Increase in 2009 Press Release T HE FINAl NATIONAl The poll, which specifically asks gAllUP POll OF THE approximately 1,000 adults Trend in Christmas Spending Forecast HOlIDAy SEASON, how much they plan to spend National mean (Spending per Person) 2000 – 2009 WHIcH WAS conducted on Christmas gifts during the December 11–13, revealed that upcoming holiday shopping Americans now predict they will season, is generally conducted spend $743 on Christmas gifts this three times in the final quarter year, up from the $639 reported in of each year. The results of December one year ago. The latest the November poll were less results are consistent with October encouraging, with respondents projections that holiday spending indicating an expected spend will be up one to two percent this of $638, a decline of 14 percent year compared to last. According from the previous month. to Gallup, it estimates the actual In Nevada, where 1.9 million percentage change in holiday residents are over the age of 18, spending by comparing its final an average spending tab per spending forecast for prior years adult customer of $743 translates to the actual percentage changes into $1.4 billion in holiday that have been calculated by the spending, up $0.2 billion from National Retail Federation for those the $1.2 billion forecast based on same years. November’s poll, and roughly equal retailers as they enter the last confidence is moving in the In October, a national Gallup to October’s forecast. Mary Lau, few days of the holiday shopping right direction, at least in the poll revealed that consumers over President of the Retail Association season. We are hopeful that this near-term.” n the age of 18 expected to spend of Nevada, noted, “The most recent last-minute uptick in the spending $740 per person on gifts this year. survey is encouraging news for forecast suggests that consumer Retail Employment in Nevada Has Declined By 17,900 Positions Since Peaking in 2007 Press Release S INcE PEAKINg IN employment occurs during the latest figures indicate there has based Applied Analysis noted, “We DEcEMBER 2007 AT holiday shopping season. For this been a loss of 8,400 retail positions, are looking for sales growth of 1 147,400 POSITIONS, reason, it is worth comparing or a decline of 6.1 percent year- to 2 percent during the holiday RETAIl jOBS IN NEvADA October 2009 figures to those over-year. Since October 2008, job shopping season as well as more have declined steadily, totaling only reported in the same month in losses in the retail sector have been seasonal hiring as compared to 129,500 as of October 2009. The 2007, just before the ramp-up to an approximately proportionate to late 2008.” Aguero cautioned, loss of 17,900 positions represents all-time peak in retail employment positions lost in the broader state however, that December 2008’s a 12.1-percent decline in retail in the state. Since October 2007, economy, with a retail position taxable sales of $3.9 billion were employment. Over the same time retail positions have declined by representing one in every nine the lowest level reported since frame, total employment in Nevada 10,600, or 7.6 percent. Over the jobs lost (10.8 percent). Total 2003, so any improvement will declined by 5.8 percent, or 74,700 same time frame, total employment employment in Nevada declined by be relative. Nevada’s 13.0-percent positions. Stated otherwise, Nevada has declined by 5.6 percent, or 6.0 percent over the same period. unemployment rate is 5.3 retailers account for roughly 11 71,300 positions. Comparing Mary Lau, President of the percentage points higher than it percent of the state’s employment October 2007 to the same month Retail Association of Nevada, said, was one year ago, meaning there but nearly 25 percent of its in 2009, a retail job represents one “The loss of jobs in the retail sector are fewer consumers each with displaced workforce. in every seven jobs lost in Nevada, over the past two years has been less disposable income generating However, it is important roughly 14.9 percent. particularly disheartening. While the sales that support retail jobs. to note that retail employment Comparing October 2009 also impacting the economy as Respecting these conditions, tends to be highly seasonal. Peak to the same month in 2008, the a whole, declines in consumers’ Aguero noted, “One year ago the discretionary spending have national and state economies were “The loss of jobs in the retail sector over the past two years disproportionately impacted retail in a free fall; today there are signs has been particularly disheartening. While also impacting employees.” of life. Consumers with a cautious the economy as a whole, declines in consumers’ discretionary When asked about the outlook but improved outlook are slowly spending have disproportionately impacted retail employees.” for the retail sector, Jeremy Aguero, creeping out of their shells.” n MARY LAU, PRESIDENT, RETAIL ASSOCIATION OF NEVADA principal analyst with Las Vegas- ◆5 Retail Association of Nevada • www.rannv.org Nevada Notes CORPORATe gIvINg: FIve TIPS eCONOmIC FOReCAST 2010 For the most part, most of the Mirage Retail President Frank Visconti is Charity organizations deservedly Most experts agree that 2010 will industries in Nevada remain in a dark confident the retail center will succeed. get most of the praise for helping show improvement over 2009. In today’s tunnel. However, we are beginning to Luxury sales at other high-end Strip people. But support behind the scenes world, improvement is the best we can see that there is a way out and a light at properties have declined, according from local businesses plays a big role in hope for. the end. to numbers available through publicly the work foundations are able to do. Nevada Business Journal traded companies. Five tips for corporate giving for A CheCk On LVRJ businesses looking to get involved with COnsuMeR sPendInG WAllIn And TAxes community agencies or charities: Nineteen percent of Nevada’s Kim Wallin is something called the gIFT CARD RuLeS care for your cause: Find a cause jobs and one-third of its General Fund Nevada controller and she would like New rules are being proposed for that you’re passionate about. This will budget are dependent on retail and everyone to know that Nevada should one of the more popular items of the help you narrow your search from the its sales tax revenues. So all residents remain one of only five states without season — gift cards. myriad options out there and also make need a profitable holiday season. some form of a corporate income tax. The new rules are being proposed it easier for you to be truly involved. Unfortunately, projections aren’t “Corporate income tax is a hidden by the Federal Reserve Board, which Narrow your focus: Given all the favorable. tax, because if you’re in a business and was directed to take action under a law needs in the community, it’s easy to “There hasn’t been a point this year we charge you five percent, you’ll charge enacted by Congress in May. spread yourself thin. Start by focusing on that we’ve shifted above 2008 numbers,” the customer 10 percent,” Wallin told But the new rules would give one cause and doing the best job you says Mary Lau, president of the Retail the Lyon County Commission recently, consumers at least five years to use the can with it. Association of Nevada (RAN). according to the Reno Gazette-Journal. gift cards before they expire. They would Don’t hesitate to ask: Corporate In fact, 2008 holiday sales totaled But while there is scant “empirical also allow service or “inactivity” fees only giving is a serious commitment, so just $3.9 billion, the lowest since research” showing that corporate under certain conditions. don’t be afraid to ask questions before December 2003. Although the national income taxes lead to higher prices, More than 95 percent of deciding to support an organization. Gallup poll conducted in October 2009 economists overwhelmingly agree that Americans have received or purchased Questions you can ask include how found that consumers expect to spend companies pass gross receipts taxes gift cards, the Fed said. And that number financial contributions are distributed, $740 per person this holiday season — directly to consumers. is unsurprising; gift cards are handy, how much goes toward overhead up 16 percent over last year’s numbers City Life convenient and practical. and how much actually stays in the — Jeremy Aguero says national numbers The new rules are not slated to community. are likely to be elevated compared to WITh neW POWeR, COunTy take effect until Aug. 22. Money isn’t everything: Being Nevada, where an unemployment rate OKS BuSINeSS FINeS LVBP involved isn’t all about opening your that’s 3.5 points higher than the national Errant businesses could pay as wallet. If tough economic times make average will dampen spending. much as $1,000 per day in fines under ZOO hAS BIg PLANS FOR financial contributions difficult, donating “Certain areas are growing, but it’s a rule that Clark County commissioners WAl-MART eMPlOyees’ your time and volunteering still can not growing that supersedes last year,” approved with no discussion. $10,000 gIFT involve you. says Lau. She explains that most growth The set of fines would range from The Las Vegas Zoo usually draws a get employees involved: is online and at discount venues. But $250 to $1,000 a day, depending on younger crowd than the group of adults A common theme heard among discount stores, like Wal-Mart, are double the number of code violations and the gathered there one December morning. companies is to never underestimate discounting, so while more sales may be severity. Unlike Las Vegas, the county With a family of wallabies looking on how giving employees can be. Many generated, overall dollar figures will be was not allowed to impose fines before. curiously, two dozen employees and companies even have separate less. State lawmakers had denied requests managers from local Wal-Mart stores charitable programs run completely by With spending down and new in past years to grant the county such assembled to present a check for employees who want to get involved in business taxes implemented this year, authority. $10,000 to zoo director Pat Dingle. their communities. many retailers have cut jobs, and if they But serious health code violations Wal-Mart market manager Sean Scolari’s, Smith’s and Wal-Mart are doing any seasonal hiring, it’s for at local endoscopy clinics became a Evans read a recent column on plans to are three corporations known for their fewer people. catalyst for legislators to enable the improve the zoo and decided to help. charitable contributions. “Another thing that’s happening county to levy fines. In tandem with fellow market manager RGJ for the holidays is that retailers, especially The fines will give the county Catherine Siefert, Evans collected small ones, can’t afford the inventory another option besides yanking a $10,000 on behalf of the employees at NO APPeALS OF gARDNeRvILLe they once did,” adds Lau. “Lenders have business or liquor license. the 10 Wal-Marts they manage. WAl-MART deCIsIOn had financial difficulties, so small retailers LVRJ Evans said it had been several years The 10-day period to appeal are using their personal credit cards since he had visited the zoo with his Douglas County’s conditional approval to buy inventory. So say a consumer is dATA hInT CRysTAls Is children, but he appreciates its place in of a Wal-Mart Supercenter in south looking for a new toy, and they wait to enTeRInG TOuGh MARkeT the local community. Siefert praised the Gardnerville passed with no one see if it goes on sale. Well, they risk not The 500,000-square-foot Crystals zoo’s educational component. challenging the county’s design review having it available.” opened Dec. 3 with nearly 40 percent Dingle, who operates on a to a higher board. The new consumer mindset is occupancy. To fully comprehend all the shoestring budget without government Wal-Mart has two years to build its realism, Lau says. “Before they might challenges facing CityCenter’s Crystals funding, said the money would come in new facility. have bought the most expensive name luxury center, you probably don’t have handy as the zoo embarks on expansion Conceptual designs for The brands, but now they’re shopping sales to look any further than at what has plans. The gift represents thousands of Marketplace at Virginia Ranch show and discount stores.” happened to one of the retail and Wal-Mart associates and what they do in 11 commercial buildings clustered Gift cards are also changing entertainment center’s anchor tenants. the community he added. around the front and west sides of the shopping dynamics. While they used A jewelry retailer, which opened LVRJ 152,495-square-foot superstore, acting to be the go-to gift for the person who its flagship store at Crystals on Dec. 3, as a buffer between the store and had everything, now they’re intended recently reported store traffic at its U.S. Highway 395. for recipients to shop after-Christmas stores was down and retail sales fell nine Ranging in size from 6,500 square sales. So retailers have more difficulty percent in the third quarter. feet to 16,600 square feet, the buildings, predicting what people will buy. And this is the market environment along with Wal-Mart, put the total While RAN is hopeful of modest that Crystals, a high-end mixture of commercial square footage of the improvement in 2010, upheaval in luxury retail stores, is entering. project around 267,216 square feet. Washington, such as the furor over Even though many of Crystals’ Record-Courier health care and fear over impending stores boast prices that will make some new taxes, will keep consumers in consumers blink twice to make sure they cautious mode, hesitant to spend. are reading the price tag correctly, MGM 6 ◆ www.rannv.org • Retail Association of Nevada National Notes u.S. ReTAIL hOLIDAy SALeS Employee fraud involving gift on employers to offer health coverage to months of 2009 compared with last year, uP 3.6 PeRCeNT cards appears to be growing sharply employees. according to a recent report from TNS U.S. retailers posted a better as retailers struggle to contain overall The support of business leaders Media Intelligence. performance during the 2009 holiday theft, now estimated at $36 billion a isn’t critical for passage, but it could help Although much of the decrease shopping season, with sales as year in the industry, or 1.51 percent Democrats blunt Republican criticism is attributable to economic weakness, tracked by MasterCard Advisors unit of retail sales, according to a leading that their bill is bad for the economy. some retailers are using social media to SpendingPulse up 3.6 percent. national study. Even as total sales Many of the country’s biggest supplement their traditional advertising SpendingPulse figures exclude have been falling, employee theft and employers have raised alarms over a at minimal additional costs, said Mike gasoline and automobile sales. They shoplifting have been rising across the provision in the Senate bill that would Gatti, executive director of the Retail reflect activity that SpendingPulse tracks United States, industry experts say, with tax a government subsidy on retiree Advertising and Marketing Association, a in the MasterCard payments networks occasional arrests making headlines. drug benefits. The move could force division of the National Retail Federation. as well as estimates for other payment Many of the gift card crimes are an accounting step that would require Best Buy’s “Twelpforce” — a Twitter- forms such as cash and checks. straightforward. Among the variations hundreds of companies to sharply lower connected set of customer-service The increase was fueled by a 15.5 of such crimes, cashiers often do fake their earnings next year. workers — has been one of the highest- percent surge in online purchases as refunds of merchandise and then, with Big businesses also worry that new profile social media outreach campaigns. well as a modest recovery in areas such the amount refunded, use their registers taxes and fees proposed in both versions Denver Post as luxury spending and women’s apparel to electronically fill gift cards, which they of the health legislation could come as tracked by SpendingPulse. In 2008, take. Or sometimes when shoppers buy years before measures meant to contain retailers posted a drop in sales, their gift cards, cashiers give them blank cards wasteful spending in the delivery of worst holiday performance in decades, after a global financial markets crisis. and then divert the shoppers’ money onto cards for themselves. health care by doctors and hospitals take effect. uPCOMInG The spike in online spending A national study, based on Groups representing smaller eVenTs stems from greater consumer comfort information obtained from 106 and medium-sized firms have largely with e-commerce, as well as from retail chains that responded to a denounced the overall effort, saying it The Retail Innovation & snowstorms that hit the East Coast and questionnaire, said employees were would drive up their costs. The Senate marketing Conference the Midwest in the final week before responsible for 43 percent of the stores’ bill “implements crippling new taxes, March 2-4, 2010 Christmas, stranding many shoppers unexplained losses, versus 36 percent and hurts our ability to create jobs at the at home. Online retail sales account for for shoplifting. The 2008 National worst possible time for the economy,” Westin St. Francis about 5 percent of overall sales. Retail Security Survey showed that said U.S. Chamber of Commerce San Francisco, CA Holiday sales can account for employee theft rose slightly that year Executive Vice President Bruce Josten. between 25 percent and 40 percent to $15.5 billion. A global study of retail Democrats argue that the final Food marketing of annual sales for many retailers. The theft found that larcenous employees result will drive down health-care National Retail Federation has forecast a averaged $1,890 in theft, compared with costs for the self-insured and for small Institute (FmI) 1 percent decline in holiday sales $438 for shoplifters. businesses. They say the new taxes 2010 washington this year. In some cases, employee theft in the Senate bill would target drug Public Policy Conference Luxury sales, which include sales at is part of a bigger problem: organized companies, health insurers and others March 17 & 18, 2010 high-end department stores recovered crime in the health-care system, and that a Hyatt Regency on Capitol Hill after a bloodbath in 2008, edging up Many retailers have embraced proposed tax on high-value or “Cadillac” 0.8 percent. technology to fight employee theft. health plans could reduce costs by 400 New Jersey Ave. NW Jewelry sales shot up 5.6 percent Data mining programs can now detect discouraging overly generous insurance Washington, DC and gathered steam in the final days whether a particular cashier is refunding plans. before Christmas, aided in part by Wall far more items than other cashiers, a The Senate bill doesn’t contain a National Assn. of Chain Street bonuses this year and the stock strategy often used to fill fraudulent gift government-run health-insurance plan, market’s rally in 2009. cards. When such trends are detected, or public option, which is part of the Drug Stores (NACDS) Sales at specialty electronics chains store officials often review video, taken House bill. Annual meeting such as Best Buy Co Inc (BBY.N) rose by overhead cameras, to see whether a WSJ Apr. 24–27, 2010 5.9 percent, in part because of pent up cashier repeatedly did refunds with the The Breakers, Palm Beach, FL demand after sales fell sharply in 2008. same friend or relative. SOCIAL meDIA weBSITeS Men’s apparel sales rose 3.9 The rate of theft is greatest among sTRenGThened hOlIdAy seAsOn percent, while women’s clothing sales retailers with high turnover rates and FOR ReTAILeRS FmI 2010 edged down 0.3 percent, though sales many part-time workers, who may be Holiday retail sales might have Annual meeting picked up in December. less loyal and under more financial staved off a visit from the Grinch thanks May 10–13, 2010 Sales at specialty apparel retailers pressure than full-time workers. He also in part to social media. Nearly half of Mandalay Bay stabilized after 2008’s disastrous holiday found higher theft among younger U.S. retailers polled in a pre-holiday season, when sales fell by one-fifth. This workers. national survey said they intended to Convention Ctr. year, sales edged down 0.4 percent, but increase their use of social media sites Las Vegas, NV showed signs of life after Black Friday BuSINeSSeS TO PuSh FOR such as Facebook and Twitter during the this year, rising 2.3 percent between mODIFICATIONS TO SeNATe BILL Christmas shopping season. NACDS marketplace the last Friday in November and Businesses are set to push for Although the exact impact of Conference/Tradeshow December 24. modifications to the Senate-approved social media on holiday retailing hasn’t Reuters health bill, while urging lawmakers to been calculated, online outreach is June 5–8, 2010 steer clear of the version passed by the thought to have been a factor in the San Diego CA sTudIes sAy keeP An House. 3.6 percent increase in November and eye On WORkeRs The Senate bill, which passed 60- December spending reported Monday NRF Loss Prevention Gift cards are just so easy — so 39 on Christmas Eve with no Republican by MasterCard Advisors’ SpendingPulse. easy for dishonest employees to exploit, backing, has drawn tentative support In addition to boosting sales, Conference & eXPO that is. from some large corporations and social media has enabled retailers to June 14–16, 2010 At a flagship store in Manhattan, industry groups, despite containing reduce or divert spending on traditional Georgia World a 23-year-old sales clerk was caught a range of provisions that they hope advertising in print and broadcast Congress Center recently ringing up $130,000 in false to change. By contrast, businesses of media. Atlanta, GA merchandise returns and siphoning the all sizes oppose the House bill, which Total ad spending in the U.S. was money onto a gift card. contains more-stringent requirements down 14.7 percent in the first nine ◆7 Retail Association of Nevada • www.rannv.org On running for (Part 3) Movin’Assemblymen up...the State Senate A series of stories about RuBeN J. KIhueN (D-AD 11) “We need to ensure that running for her Assembly seat again, Sheila Leslie’s work on behalf of matrix Score 68.75% consumers are protected,” Kihuen Sheila Leslie had not planned on families, children and those in need Running for Senate District 10 — said, “we had to cut consumer running for the Senate. is well known. She is also concerned Clark County protections in the last legislative “I thought Barbara Buckley was with small businesses and their When the Senate District 10 session, but I’m going to work this going to run for Governor and I was struggles in the present economy. seat opened up, Ruben Kihuen session to bring them back.” prepared to devote myself to her “I know that businesses can’t didn’t have to think long before Education is a primary concern campaign,” Leslie explained. “When handle tax hikes in this economy,” deciding to leave his Assembly seat of Ruben’s, but right now jobs are an Barbara decided, for good reasons, she mused, “we need to diversify and run for the Senate. equal concern. not to run, I took some time out the economy, create more jobs and “About 70% of the Senate “We have to find a way to pay for and pondered what I wanted to do. then look for a stable source of rev- District is my Assembly seat. This what we need, but taxing business- There are still issues I want to work enue. But no tax hikes for now.” district is composed of the people es right now would be a disaster. I on and with Bernice (Mathews) She’s concerned about the I want to help, the people I identify know of too many small businesses leaving the Senate, it made sense possible cuts in the state budget, with and work with,” Ruben ex- that could go under if we raise their for me to run for her seat.” but has some ideas. plained. “I’ve been able to address taxes. We need to lure more busi- Sheila Leslie is familiar with “It doesn’t get much publicity,” the issues which affect my district nesses to Nevada. We’re the third the senate district. Her masters in Leslie said, “but I also chair the ––higher standards for the schools, most business-friendly state in the Spanish will come in handy with Audit sub-committee. The purpose low-interest loans for small busi- nation and we need to keep that. 18% or more having a Hispanic is to look at state agencies to see nesses when they want to expand We need to diversify the economy, background. “I feel I can reach out if they’re wasting tax dollars or their workforce and higher penalties be a leader in renewable energy to all the constituents in this district not being as efficient as the law for domestic violence.” and build a tax structure that meets and reassure them that they have a intended, or, in some cases, not Ruben Kihuen doesn’t just “talk our needs,” Kihuen said. voice in Carson City,” she said. following the law. This committee the talk”, he literally “walks the walk”. He considers himself a fiscal moder- First starting years ago, with gives me a blueprint for where cuts Born in Mexico, he grew up in this ate and is disturbed that foreclo- the Children’s Cabinet, Sheila Leslie might be appropriate.” district of Las Vegas. He won awards sures and unemployment have has proved successful at bringing Senator Bernice Mathews, on the high school soccer fields, caused so many to be reliant on the needs of many constituencies who’s also term-limited and leaving graduated from UNLV with a degree government assistance. to the attention of the media and the Senate seat has promised to in Education and in-between work- “I walk my district all the time the public. When she first ran for support Sheila Leslie in her run. ing as a community liaison for the and listen to the people, their ideas, office in 1998 she didn’t really “That means so much to me,” College of Southern Nevada and their concerns, their needs. If I’m not expect to win. she said. “I look forward to meet- representing his district, he’s com- listening, then I don’t deserve to be “I was really quite surprised, ing and talking to the many small pleting his Masters Degree in Public elected,” he said. but more than that, I was honored. businesspeople in the this district. I Administration. And I still feel that esteem today. want them to know that my door is He knows the people in his SheILA LeSLIe (D-AD 27) To be chosen by the voters to rep- open to them and hear their ideas,” district. He’s concerned about scam matrix Score: 66.25% resent them is such an honor that I she concluded. n artists and others who may take ad- Running for Senate District 1 – just want to do the best I can for all vantage of those who do not speak washoe County my constituents; I want to give back perfect English. Although term-limited from to the community,” she emphasized. Get Ready for the Next Big Shopping Rush By Barbara Wold, Global Retail & Consumer Expert W HETHER IT’S A l Establish dress codes for touch and provides the caller with a l Stock and clean during HOlIDAy SAlE OR employees and enforce them. person to identify with on the other hours when the store is not open. jUST A BIg SAlE Employees are the representatives end of the line. Doing these chores when the store EvENT, HERE ARE of the business and should project l Clean up the cash-wrap area is open is inconsiderate to shoppers a few must-do last minute tips — the image the business wants to as-you-go and put everything in and doesn’t convey a professional l Have all salespeople convey. its place. Customers are concerned image. read company ads, catalogs l Greet everyone who walks about transaction accuracy and l Get everyone on board. and distributed literature before through the door. Coming up your services, i.e., shipping, if this Ensuring that everyone in the customers come in with questions with five different greetings — so area is a mess. organization understands what the and inquiries. Also check out the customers don’t hear the same l Listen, really listen to winning advantage is and what’s ads of the competition. If your greeting over and over when customers. If you don’t really listen their role in supporting it. competition has a Facebook page shopping in the store. and show customers the wrong l Stay in contact with – become a fan so you know what l Have employees identify merchandise – they will assume you your customer base — contact information they are passing on to themselves when answering the don’t have what they are looking for customers who shop in your store customers. phone. This adds a professional and leave. Continued on next page 8 ◆ www.rannv.org • Retail Association of Nevada Valentine’s Day 2010: February 14 O PINIONS ABOUND These establishments employed in sales. AS TO WHO WAS 18,733 people. Source: USDA National Agricultural Statistics Service THE ORIgINAl vAlENTINE, with the $13.9 billion — Total value 20,227 — The number most popular theory that he was of shipments in 2006 for firms of florists nationwide in a clergyman who was executed producing chocolate and 2006. These businesses for secretly marrying couples in cocoa products. Nonchocolate employed 98,373 people. ancient Rome in spite of Emperor confectionery product Source: County Business Patterns Claudius II, who felt that marriage manufacturing, meanwhile, was a weakened his soldiers. In any event, $7.2 billion industry. JeweLRy in A.D. 496, Pope Gelasius I declared Source: Annual Survey of Manufacturers 28,300 — Number of Feb. 14 as Valentine Day. Through jewelry stores in the United the centuries, the Christian holiday 3,563 — Number of confectionery States in 2006. Jewelry became a time to exchange love and nut stores in the United States stores offer engagement, messages, and St. Valentine became in 2006. ranked fifth nationally in marriages, Source: County Business Patterns wedding and other rings the patron saint of lovers. Esther to lovers of all ages. In February even though its total population Howland, a native of Massachusetts, 2008, these stores sold $2.6 billion in that year among states was 35th. 24.5 pounds — Per capita (California ranked first in marriages.) is given credit for selling the first merchandise. consumption of candy by Source: National Center for Health Statistics mass-produced valentine cards Source: County Business Patterns Americans in 2007. in the 1840s. The spirit of love Source: Current Industrial Reports The merchandise at these continues today as valentines are locations could well have been 57% and 60% — The percentages of American women and men, sent with sentimental verses, from FLOweRS produced at one of the nation’s respectively, who are 18 or older and to young and old romantics. $416 million — The combined 1,777 jewelry manufacturing establishments. and married (includes those who wholesale value of domestically are separated). CAndy Is dAndy produced cut flowers in 2007 for all Source: County Business Patterns Source: Families and Living Arrangements: 2007 1,170 — Number of locations flower-producing operations with producing chocolate and $100,000 or more in sales. Among Be mINe 2.2 million — The number of 72% — Percentage of people 30 to cocoa products in 2006. These states, California was the leading 34 in 2007 who had been married establishments employed 39,457 marriages that took place in the producer, alone accounting for at some point in their lives — either people. California led the nation in United States in 2007. That breaks about three-quarters of this amount currently or formerly. the number of such establishments down to a little more than 6,000 a Source: Families and Living Arrangements: 2007 ($320 million). with 128, followed by Pennsylvania Source: USDA National Agricultural day. Source: National Center for Health Statistics *The Census Bureau data in this section do with 116. Statistics Service not include same-sex marriages; the National Source: County Business Patterns Center for Health Statistics data do. $29 million — The combined 126,354 — The number of Editor’s note: The preceding data were marriages performed in Nevada collected from a variety of sources and may 473 — Number of locations wholesale value of domestically be subject to sampling variability and other that produced nonchocolate produced cut roses in 2007 for all during 2007. So many couples tie sources of error. confectionary products in 2006. operations with $100,000 or more the knot in the Silver State that it Census Bureau’s Public Information Office “I don’t understand why Cupid was chosen to represent Valentine’s Day. When I think about romance, the last thing on my mind is a short, chubby toddler coming at me with a weapon.” AUTHOR UNkNOWN Next Big Shopping Rush Continued regularly. You can use email or l Store and window display can be many things. I like to see shopping experience will keep regular mail. I recommend you call lighting. Add at least 30% more enthusiastic, happy staff all pulling customers in your store longer and your very best customers yourself. light in your store; it will affect the together to achieve the store’s will increase sales. Tell them what’s going on and why way your store looks and help sell goals with a focus on exceptional Daily sales targets — should be they need to drop into your store. If more products. It can be as easy customer service. shared with your staff. They should they need a little more persuasion as replacing light bulbs that have l Hands free shopping — know what is expected of them — let them know that a gift burnt out. offer customers a basket, a bag or and what the goals of the store are. certificate for $5 is waiting for them. l Focus on selling. Teach your cart. Take your customer’s coats and Create a sales culture in your store. l Build your database. It’s a staff to show just one more item to other bags, and offer to look after You alone are the driving force in very busy time of year but don’t every customer that they talk too. them. your business. Get out on the sales forget to capture customers contact Don’t forget add on sales at the cash Do what ever it takes to make floor more often — then watch info to grow your database — it’s register. your customers feel wanted and your sales increase. They always do “gold” to you. l Tone in the store — this cared for. Creating this type of when the boss shows up! n ◆9 Retail Association of Nevada • www.rannv.org Important Information for SIg members The NRS governing self insured groups requires notifying members of all new members to the Nevada Retail Network Self Insured Group. New members for NRNSIG from January 1, 2010 to January 31, 2010 are listed below. Probe Systems Skye Communications nRnsIG members who wish to register a negative vote on a new group member, please write NRNSIG at 575 S. Saliman Road, Carson City, NV 89701, indicating which member and the reason(s) for the negative vote. TAKE cONTROl OF yOUR WORKERS’ cOMP cOST Be Part of… l Greater management control that cuts overhead costs l Pre-employment screening at a small co-pay for NRN members only The Nevada Retail Network Certificate #5004 l Team Safety/Loss Control Program for all members l Investigation and defense of claims l Direct savings that give members greater incentive to control losses Take Control Today… Call mike Olson 800-859-3177 • Self Insured Group • Sponsored by: • Membership in RAN Required • The Retail Association of nevada 410 South Minnesota Street Carson City, NV 89703-4272 memBeRShIP INFORmATION: Find out more about RAN’s self insured group. Call Mike Olson, 800-859-3177, or the RAN office at 775-882-1700 (toll free in Nevada 800-690-5959). Don’t forget to check out our website, www.RANNv.org. 10 ◆ www.rannv.org • Retail Association of Nevada Security Tips for Retailers H IgH NUMBERS OF about as you stock your shelves will expose them to credit card your products are not leaving TRANSAcTIONS, and train your employees. the store faster than your fraud, identity theft, and privacy lARgE vOlUMES employees are selling them. violations, they will spend their OF MONEy 1. PROTeCT yOuR CReDIT money elsewhere. If RFID (radio frequency and merchandise changing CARd dATA As your online presence identification) technology helps hands regularly, and frequent Consumers are more grows, choose a Web host with a you track when stock is running employee turnover make concerned than ever about low or items are misplaced, use spotless reputation for security, retailers a prime target for theft identity theft and credit card and developers who will ensure it as a security tool as well. Install and fraud. The more employees, fraud, and rightly so: Federal a tag reader at your door to every new feature on your site is suppliers, and customers you Trade Commission officials trigger an alarm if an item leaves secure as well as functional. This interact with each day, the estimate there were 10 million may require additional training the store before an employee greater the odds that one of U.S. victims of identity theft for developers, and/or an audit removes or disables its RFID tag them will be tempted. Here between early 2002 and by a security consultant to at the point of sale. Obtaining are some security tips so that early 2003. This resulted in ensure you have the proper data RFID expertise is available retailers can avoid spending all a total estimated cost of US and application protections in through large multinational their time worrying about their $53 billion to U.S. businesses place. Your e-commerce hosting IT consulting firms, as well as vulnerabilities. and individuals, according company should be able to smaller, regional consultants to the Cutter Consortium, an provide training and expertise and RFID technology vendors. IN SummARy: international IT research and on this topic — and contractual Given the fact that RFID is still l Securing customers’ advisory firm based outside in early stages of adoption, assurances for security. Consider financial and personal data evaluate outsourcers is every bit as important to “The more employees, suppliers, and customers you interact with carefully and hire an expert your business as providing each day, the greater the odds that one of them will be tempted.” with real-world experience quality products. implementing and l Security technology of Boston. In June 2005, the instituting secure application troubleshooting RFID projects. protects your storefront and major credit card companies development procedures in stock as well as your databases. addressed this issue by your organization. nexT sTePs The retail industry indeed faces establishing a global technical Working with either your unique security challenges, data security standard, known as 3. KeeP yOuR mARKeTINg IT staff or a security consultant, ranging from protecting the Payment Card Industry (PCI) dATA seCuRe pinpoint your most urgent credit card data from hackers standard. To access your customer needs and develop a plan to to protecting inventory from A merchant that relationship management (CRM) address them. Improved security shoplifters. compromises customer system, require that employees bolsters customer confidence For example, wireless information by failing to comply enter two passwords: the first and avoids costly problems such networking, point-of-sale faces hefty fines and may even for your corporate network, as: lost revenues from theft; (POS) devices, and other digital lose the right to take credit and the second to access the lost or compromised data; technologies can make your cards entirely. Currently, only application. This process will business interruptions caused company more productive businesses handling more protect the application itself by network downtime, and and profitable, but they also than 6 million credit card and the data within it. (The the potential legal provide new opportunities for transactions a year must meet same process should, of course, consequences of a security thieves to break into a real or the PCI standard’s requirements apply to all of your business breach. virtual storefront. A hacker who for regular security audits. applications housing sensitive Although you may not accesses your credit card server Although most midsize retailers data) have the budget to truly or shuts down your Web site, do not reach this threshold, safeguard your entire business, even briefly, can destroy both you still need to keep credit 4. PuT CONTROLS ON even simple steps such as your profit margins and your card numbers out of the wrong yOuR InVenTORy requiring employees to change reputation. hands. Knowing what you have in their passwords regularly and Fortunately, safeguarding stock boosts your profit margin, encrypting critical databases your data doesn’t require the 2. SAFeguARD both by enhancing customer can make a huge difference to resources of a Marks & Spencer yOuR e-COMMeRCe service and by minimizing customer confidence — and to department store chain or an TRAnsACTIOns losses. Integrate financial and your profitability. Amazon.com. Plenty of security An online sales channel is supply chain solutions to CA Business Journal initiatives fit neatly into a only as effective as it is secure. capture individual transactions, midsize retailer’s budget. Here’s If customers worry that doing compare them to expected what you should be thinking business with you electronically inventory levels, and make sure ◆ 11 Retail Association of Nevada PRESORTED 410 South Minnesota Street STANDARD U.S. POSTAGE PAID Carson City, Nevada 89703-4272 CARSON CITY, NV PERMIT NO. 98 NEVADA NEWS Nevada News is published by the Retail Association of Nevada, a nonpartisan, nonprofit corporation founded in 1969 representing the Retail Community, the Chain Drug Council and the Grocery Industry Council. Mary F. Lau President/CEO Elizabeth MacMenamin Vice President of Government Affairs Lea Tauchen Senior Director of Government Affairs Bryan Wachter Director of Government Affairs Danielle Cherry Office Administrator Mike Olson Account Executive / Workers’ Comp Ande Engleman Newsletter Editor Sue Arzillo, Alphabet Soup Inc. Newsletter Design & Layout NRF Calls Senate Health Care Bill Unwanted Gift, Says Passage Could Force Retail Job Losses W ASHINgTON — that would bring costs under economy and razor-thin profit senators to reject the Reid bill, THE NATIONAl control and make health care margins give us the least ability saying its conditional employer RETAIl more accessible by making to absorb the added expense,” mandate and other provisions FEDERATION it more affordable. What we Trautwein said. “If labor costs make it “the biggest anti- expressed disappointment at received are employer mandates increase, many retailers will have stimulus legislation imaginable” the Senate passage of health and other provisions that no choice but to reduce the and that it would lead to further care reform legislation, saying will drive up costs that are size of their workforces. The net job losses in the retail industry the measure does little to already far too high and that result of this legislation is that and other segments of the reduce costs for businesses and will endanger the employer- some workers who currently economy. n is likely to result in further retail provided health insurance have both a job and health job losses. NRF said the vote system that millions of American insurance might find themselves The National Retail Federation is the world’s largest retail trade association, would be included in its annual families depend on. It’s time with neither.” with membership that comprises all retail ranking of key issues important for Congress to go back to the The Senate voted to pass formats and channels of distribution to the retail industry. drawing board and come up the Patient Protection and including department, specialty, discount, catalog, Internet, independent stores, “The Senate thinks it has with a health care plan that Affordable Care Act, sponsored chain restaurants, drug stores and grocery given American businesses and would actually make solid by Majority Leader Harry Reid, stores as well as the industry’s key trading the public an early Christmas progress in reducing costs. D-Nev. Lawmakers must resolve partners of retail goods and services. NRF represents an industry with more than 1.6 present, but this isn’t what we That would be a gift worth differences between the Senate million U.S. retail establishments, more asked for and it needs to be celebrating.” bill and a conflicting health than 24 million employees — about one returned,” NRF Vice President “The employer mandates in care reform bill passed by the in five American workers — and 2008 sales of $4.6 trillion. As the industry umbrella and Employee Benefits Policy both the House and Senate bills House in November before the group, NRF also represents more than 100 Counsel Neil Trautwein said. amount to a tax on jobs that will legislation can go to President state, national and international retail “What we asked for and what drive up labor costs for retailers Obama for his signature. associations. www.nrf.com Congress promised was a plan at a time when the struggling NRF previously urged
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